A crypto trader on the decentralized perpetual exchange Hyperliquid has turned an initial $3 million into $22.5 million within a week by using an aggressive rolling short strategy, according to on-chain analyst @EmberCN. The wallet address 0xd8351657…18fd7 first shorted Ethereum with high leverage, then repeatedly used unrealized profits as margin to open larger positions as Bitcoin and other majors crashed.
Holding $332M in Shorts Across ETH, BTC, HYPE, PEPE, XMR
The trader currently holds short positions in five assets: ETH, BTC, HYPE, PEPE, and XMR, with a total notional value of $332 million. Bitcoin is his largest short, opened near $92,000 with roughly 40x leverage. During the latest market drop, he added more Ethereum shorts and initiated a new short on the meme coin PEPE.
How the Rolling Strategy Works – and Its Downside
Rolling a position means using floating profits as additional margin to open ever-larger shorts. If the trend persists, it creates a snowball effect: the $3 million seed quickly grew to $22.5 million. But the same leverage makes the account extremely sensitive to any bounce. Liquidation prices are close to the entry, so a sharp reversal could wipe out all collateral instantly. The community notes that such a strategy rarely succeeds without perfect timing.
Extreme Speculation, Not for Most
Market observers label this a high-risk degen strategy that only suits traders with extreme risk tolerance and precise market timing. For ordinary investors, copying such moves often leads to catastrophic losses. This case underscores that crypto derivatives offer high rewards but also concentrate extreme danger.